Tax Exemption for NGOs & Donors

12A & 80G Registration

Get your charitable organization registered under Section 12A and 80G of Income Tax Act. Enjoy complete tax exemption on income and provide tax benefits to your donors.

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Key Highlights

100% Tax Exemption for NGO Income
50-100% Tax Deduction for Donors
Increased Donor Trust & Credibility
Eligible for Government Grants & CSR Funds

What is 12A & 80G Registration?

12A and 80G are two important sections under the Income Tax Act, 1961 that provide significant tax benefits to charitable organizations and their donors. These registrations are essential for any NGO, Trust, or Section 8 Company that wants to operate efficiently and attract donations.

Section 12A

Tax Exemption for Organization

Registration under Section 12A exempts the charitable organization from paying income tax on its surplus income, provided the income is used for charitable purposes. This allows NGOs to utilize 100% of their funds for their mission.

Section 80G

Tax Deduction for Donors

Registration under Section 80G allows donors to claim tax deduction on their donations. Depending on the category, donors can claim 50% or 100% deduction, making donations more attractive and encouraging philanthropy.

Benefits of 12A & 80G Registration

Complete Tax Exemption

Organization's income exempt from income tax

Donor Tax Benefits

Donors get 50% or 100% tax deduction

Increased Donations

More people donate due to tax benefits

Enhanced Credibility

Government recognition builds trust

CSR Funding Eligible

Receive Corporate Social Responsibility funds

Government Grants

Eligible for various government schemes

Perpetual Validity

Permanent registration after initial 5 years

Professional Image

Recognized as genuine charitable institution

Who Can Apply for 12A & 80G?

Charitable Trusts
Section 8 Companies
Registered Societies
Educational Institutions
Medical Relief Organizations
Religious Institutions
Environmental NGOs
Social Welfare Organizations
Any Charitable Institution

80G Tax Deduction Categories

CategoryDeduction %Qualifying Limit
Prime Minister's National Relief Fund100%No Limit
National Defence Fund100%No Limit
Approved University/Educational Institution100%No Limit
Government Notified Funds100%No Limit
Charitable Organizations (General)50%10% of Adjusted GTI*
Local Authority for Family Planning100%10% of Adjusted GTI*

*GTI = Gross Total Income. Most charitable organizations fall under 50% deduction category with 10% limit.

12A & 80G Registration Process

1

Document Collection

Gather all required documents including registration certificate, trust deed, PAN, bank statements, and activity reports

2

Apply for 12A Registration

File Form 10A online on Income Tax portal for 12A registration (prerequisite for 80G)

3

12A Provisional Registration

Receive provisional 12A registration valid for 5 years from Income Tax Department

4

Apply for 80G Registration

File Form 10A for 80G registration after obtaining 12A approval

5

Verification & Scrutiny

Income Tax officer may seek clarifications or conduct inquiry about activities

6

80G Certificate Issued

Receive 80G registration certificate with unique registration number for donors

New Registration Regime (From April 2021)

Provisional Registration (Form 10A)

All new organizations get provisional registration for 5 years. Must apply within 1 month of incorporation. Old organizations had to re-register under new regime.

Regular Registration (Form 10AB)

After provisional period or before expiry, apply for regular/permanent registration. Valid in perpetuity but subject to annual compliance and audit.

Annual Compliance

File Form 10B/10BB (audit report), maintain proper books, file ITR-7, and ensure all activities are as per stated objects.

What You Get

12A Registration Certificate
80G Registration Certificate
Unique Registration Number (URN)
Online Filing on IT Portal
Complete Documentation Support
Audit Report Preparation (Form 10B)
ITR-7 Filing Assistance
Compliance Calendar
Donor Receipt Format
Post-Registration Support
Renewal Reminders
Query Resolution with IT Dept

Annual Compliance After Registration

Audit Report (Form 10B/10BB)

One month before ITR due date

Mandatory audit report by CA if income exceeds ₹2.5 Lakhs

Income Tax Return (ITR-7)

30th September

File annual return with complete income and expenditure details

Maintain 85% Application Rule

Ongoing

At least 85% of income must be applied for charitable purposes

Donation Receipts

Ongoing

Issue proper receipts with 80G registration number to all donors

Books of Accounts

Ongoing

Maintain proper accounting records as per Income Tax Act

Why Get 12A & 80G with Saarthium?

Expert Chartered Accountants
100% Online Process
Complete Documentation Support
Dedicated Relationship Manager
Quick Processing (30-45 Days)
Post-Registration Compliance Help
ITR-7 Filing Assistance
400+ Successful Registrations

Common Reasons for Rejection

✗Incomplete or incorrect documentation
✗Objects not genuinely charitable
✗Non-compliance with 85% application rule
✗Improper books of accounts
✗Activities not matching stated objects
✗Delayed filing or missing deadlines
✗Discrepancies in financial statements
✗Benefits to specific individuals (not public)

Our Expert Tip: We ensure your application is complete and compliant, addressing all potential issues before submission to maximize approval chances.

Important Points to Remember

⚠️

12A registration is mandatory before applying for 80G

⚠️

Apply for provisional registration within 1 month of incorporation

⚠️

Maintain minimum 85% application of income for charitable purposes

⚠️

Issue proper donation receipts with 80G number to all donors

⚠️

File Form 10B/10BB (audit report) before ITR due date

⚠️

Re-registration may be required if activities change significantly

Quick Information

Processing Time30-45 Working Days
Documents Required
Trust Deed / MOA & AOA
Registration Certificate
PAN Card of Organization
PAN & Aadhaar of Trustees/Directors
Bank Account Statement (Last 3 Years)
Income & Expenditure Statement
Activity Report / Annual Report
List of Donors (if any)
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Frequently Asked Questions

What is 12A Registration?
12A Registration under Section 12A of Income Tax Act provides tax exemption to charitable organizations like NGOs, Trusts, and Section 8 Companies. Once registered, the organization's income is exempt from income tax, provided it is applied for charitable purposes only.
What is 80G Registration?
80G Registration under Section 80G allows donors to claim tax deduction on donations made to registered charitable organizations. Donors can claim 50% or 100% deduction on their taxable income depending on the type of organization and government approval.
Is 12A registration mandatory for 80G?
Yes, 12A registration is a prerequisite for 80G registration. An organization must first obtain 12A registration before applying for 80G registration. Both registrations together provide complete tax benefits to the organization and its donors.
How long is 12A and 80G registration valid?
As per new rules effective from April 2021, both 12A and 80G registrations are initially granted for 5 years (provisional registration). After that, organizations need to apply for permanent registration which is valid in perpetuity subject to annual compliance.
Who can apply for 12A and 80G registration?
Charitable Trusts, Section 8 Companies, Registered Societies, and any institution established for charitable purposes like education, medical relief, poverty alleviation, etc. can apply. The organization must be engaged in genuine charitable activities.
What happens if 12A/80G is not renewed?
If registration is not renewed before expiry, the organization loses tax exemption status. Income becomes taxable, and donors cannot claim deductions. Organization must reapply as new applicant and may face scrutiny for the gap period.

Related Services

Section 8 Company

Non-profit company registration for charitable purposes

Trust Registration

Register charitable or private trust in India

FCRA Registration

Receive foreign contributions for your NGO

Ready to Get 12A & 80G Registration?

Join 400+ NGOs who trusted Saarthium for their tax exemption registration. Expert CA guidance for complete compliance.

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